Peraso(PRSO) - 2021 Q2 - Quarterly Report

Financial Performance - For the six months ended June 30, 2021, the company incurred net losses of approximately $2.6 million, with an accumulated deficit of approximately $245.2 million[75]. - Product revenue for the three months ended June 30, 2021 decreased by 39% to $1,017,000 compared to $1,679,000 in the same period of 2020[86]. - Royalty and other revenue for the three months ended June 30, 2021 decreased by 48% to $151,000 compared to $289,000 in the same period of 2020[87]. - Gross profit for the three months ended June 30, 2021 decreased by 47% to $724,000 compared to $1,364,000 in the same period of 2020[88]. Expenses - Research and development expenses for the three months ended June 30, 2021 increased by 24% to $1,222,000 compared to $985,000 in the same period of 2020[90]. - Selling, general and administrative expenses for the three months ended June 30, 2021 increased by 34% to $1,287,000 compared to $964,000 in the same period of 2020[92]. - Interest expense for the three months ended June 30, 2021, was $0, a decrease of $54, representing a 100% reduction compared to the same period in 2020[94]. - Interest expense for the six months ended June 30, 2021, was $30, down $134 or 82% from $164 in the same period in 2020[94]. Cash Flow and Financing - As of June 30, 2021, the company had cash, cash equivalents, and investments totaling $23.1 million, with working capital of $19.9 million[96]. - Net cash used in operating activities for the first six months of 2021 was $2.8 million, primarily due to a net loss of $2.6 million[97]. - Net cash used in investing activities for the six months ended June 30, 2021, was $9.6 million, representing purchases of investments[99]. - Net cash provided by financing activities for the six months ended June 30, 2021, was $20.0 million, primarily from direct offerings of common stock[100]. - The company completed two registered direct offerings generating net proceeds of approximately $18.8 million during the six months ended June 30, 2021[104]. - The company expects cash expenditures to exceed receipts in 2021, as revenues will not be sufficient to offset working capital requirements[104]. - The company had approximately $23.1 million in cash and investments and no debt as of June 30, 2021[104]. - The company has primarily financed operations through multiple offerings of common stock and asset sale transactions[75]. Future Outlook - The company expects continued negative impacts on revenues due to the COVID-19 pandemic for the remainder of 2021[79]. - The company anticipates that total research and development expenses will increase in 2021 compared to 2020 due to increased development costs for the VAE IP[91]. - The company is developing a new product line, the Virtual Accelerator Engine (VAE), which will consist of software, firmware, and IP available for license[74]. - The company does not maintain any off-balance sheet arrangements that could materially affect its financial condition[107].